Lawsuits can create enormous financial strain and pressure on both yourself and your business if you do not have the relevant business insurances to help you pay for legal costs and compensation packages.
As well as implementing a safeguarding strategy that instigates risk assessment and workplace health and safety guidelines, you should prioritise securing a public and employer liability insurance package that works for you.
Numerous different business insurances can benefit your company, from vehicle insurance for your vans and lorries, to equipment and product cover in the case of theft or damages. However, the most important insurances are those that relate to people, most specifically your employees and the general public.
The scope of the policy agreement to which you should agree depends entirely on the nature of your business as well as the size of your workforce and the projects you complete, but it’s always recommended that you seek expert advice, such as from an insurance broker.
How can public liability insurance benefit my business?
Although public liability insurance isn’t legally required, it will certainly save you a lot of financial expense when it comes to those costly lawsuits against your business. Public liability insurance can financially protect you from claims made against your business by third parties in relation to work carried out by your company.
The problem that gives rise to a claim can be anything from damages caused to a home you’ve been working on, to injury or illness to a third party – such as a member of the general public – as a result of an incident related to your work.
Although available with a range of different add-ons and scope, this insurance can cover legal costs and medical bills, as well as compensation packages awarded against you in the future. In addition, possessing this invaluable insurance package will highlight you as a reliable business renowned for professionalism and quality work.
How can employer liability insurance benefit my business?
Employer liability insurance is legally required in the UK – and, for that reason alone, it is a good idea for you to purchase a fitting policy. Often referred to as EL, this type of insurance covers you against any potential claims or compensation by employees in relation to an illness or injury that has been sustained by someone working for you.
According to statistics, failing to purchase this insurance cover could mean lawsuits as well as fines of up to £2,500 for every day that you are not covered.
This insurance covers all types of employees in the face of injury or illness – including full- and part time contract staff, freelance workers and temporary members of your workforce. Remember: if suffering an injury at work or an illness means that they’re required to stay off sick, then this could pose financial strain to your business as well as risk a loss of income.
Let’s consider some examples of how employer liability insurance can cover expenses in a costly lawsuit. Let’s say you have a builder who has now retired but spent many years working for you operating pneumatic machinery on-site.
He has now developed carpal tunnel syndrome and is looking for compensation against you for the injuries he has sustained. Your employer liability insurance package can meet all legal costs and compensation which you are liable to pay in this instance.